Snagglebit has always tried to impress Lillibit. He tries to impress her with his sledding skills by letting her ride with him, but unfortunatly the sled ends up crashing into Elderbit. Elderbit tells them to watch out for such behavior or the Legendary Snow Woman will get them. Willibit comes over in time to see what happened after Elderbit leaves. Snagglebit says he isn't scared by Elderbit's storey, but Lillibit says that she "sees a castle" in her dreams. Lillibit wonders if there really is a castle over the mountain ridge. Snagglebit looks up in the sky and then gets an idea.
Later that night Snagglebit builds a kind of kite-glider to help Lillibit see over the mountain tops. The next day he goes to Lillibit's house to show her his new invention. Lillibit sits in the middle of the kite-glider and Snagglebit, along with the help of a couple other boys) hoists it up into the air. Everything is going great until the wind carries Lillibit too far out and the boys loose thier grip on the rope. Willibit comes by along with Chip and Snagglebit regretabley tells them what happened. Willibit then decides to look for Lillibit.
Finally Willibit spots the wreck of Snag's kite-glider , but no sign of Lillibit.
A lady finds Willibit and takes him to her home where he meets up with Lillibit. The lady says that she will get something for them to eat and leaves them in the room. When the children see the lady's shadow sharpening a knife they immediatly figure that she intends to harm them. Willibit takes Lillibit and immediatly decides to leave. When the lady asks where they are going Willibit immediatly and irritably says "Back to our village!" The lady looks sad, Lillibit appologizes and begs her not to lock them up in a dungeon. Willibit admits that he thought the lady was going to eat them. The lady says that the do not have to worry about those things. She then tells them about how many years ago when she lost her son in a snow drift, and how she has been coming back every winter to look for him. The children then understand how the Snow Woman legend came to be. The lady then asks the children to keep what they know about her secret. She then shows them a shortcut back to Foothill Forest. When they return the find Grumpabit, Dr. Snoozabit, Elderbit, Mayor Bossabit, and a very relieved and sorry Snagglebit waiting for them.